Life Technologies Announces First Quarter 2013 Results

            Life Technologies Announces First Quarter 2013 Results

Revenue increased 2.5% to $963 million, or 4.4% excluding currency

GAAP earnings per share (EPS) of $0.69, or $1.07 on a Non-GAAP basis, an
increase of 8%

Free Cash Flow of $148 million

PR Newswire

CARLSBAD, Calif., May 2, 2013

CARLSBAD, Calif., May 2, 2013 /PRNewswire/ --Life Technologies Corporation
(NASDAQ: LIFE) today announced results for its first quarter ended March 31,
2013. Revenue for the first quarter was $963 million, an increase of 2.5
percent over the $939 million reported for the first quarter of 2012.
Excluding the impact of currency, revenue growth for the quarter was 4.4
percent compared to the same period of the prior year.

"We had a successful start to the year with strength across our Applied
Sciences and Genetic Analysis business groups, including double digit growth
in both our Bioproduction and Forensics businesses, which drove revenues and
earnings growth above our guidance expectations," said Gregory T. Lucier,
chairman and chief executive officer of Life Technologies. "Our end markets
remained in line with our expectations, with strength in emerging markets and
across much of Asia, and continued cautious spending in the United States and
Europe, as expected.

"During the quarter, we continued our rapid pace of innovation with new
bioinformatics tools for Ion Torrent and software for our synthetic biology
business. We also continued to execute against our strategy to expand in
growth and emerging markets as we entered into new collaborations in stem
cells, Rapid DNA products, and acquired our reagent distributor in South
Korea."

Lucier continued, "On April 15, Life Technologies and Thermo Fisher Scientific
announced that the two companies had signed a definitive agreement under which
Thermo Fisher will acquire Life for $76.00 in cash per fully diluted common
share, or approximately $13.6 billion. We look forward to joining forces with
the outstanding team at Thermo Fisher, which shares our commitment to
customers, employees and shareholders."

Life Technologies reported results compared to the quarter ended March 31,
2012. Results are non-GAAP unless indicated otherwise. A full reconciliation
of the non-GAAP measures to GAAP can be found in the tables of today's press
release.

Analysis of First Quarter 2013 Results

  oFirst quarterrevenue increased 2.5 percent over the prior year, or 4.4
    percent excluding the impact of currency. Revenue growth for the quarter
    was driven by strong sales from the Ion Torrent,Bioproduction and
    Forensics businesses, partially offset by expected declines in SOLiD^®
    sales and lower Research Consumables and capital equipment sales primarily
    due to the expected slowdown in the U.S. as the threat of sequestration
    impacted customer buying patterns.
  oGross margin in the first quarterwas 66.2 percent, approximately 40 basis
    points lower than the same period of the prior year. Gross margin was
    negatively impacted by a higher mix of Ion Torrent instrument sales,
    Bioproduction sales and unfavorable currency rates, partially offset by
    manufacturing productivity and royalties including licensing agreements.
  oOperating margin was 29.4 percent in the first quarter, approximately 80
    basis points lower than the same period of the prior year. Operating
    margin was primarily impacted by lower gross margin and planned
    investments in emerging markets and molecular diagnostics.
  oThe tax rate was 26.2 percent for the first quarter. 
  oFirst quarter EPS increased 8 percent to $1.07. 
  oDiluted weighted shares outstandingwere174.5 million in the first
    quarter, a decrease of 8.6 million shares over the prior year. The
    decrease was a result of the company's share repurchase program, partially
    offset by shares issued for employee stock plans. The company repurchased
    $105 million or 2 million shares in the first quarter.
  oCash flow from operating activities for the first quarter was $135
    million. First quarter capital expenditures were $24 million, offset by
    $37 million of cash proceeds from the sale of assets, resulting in free
    cash flow of $148 million. The company ended the quarter with $293
    million in cash and short-term investments.

Business Group and Regional Highlights

  oResearch Consumables revenue was $409 million in the first quarter, a
    decrease of 3 percent compared to the prior year. Excluding the impact
    from currency, revenue for the business group declined 1 percent. The
    decline in growth for the quarter was primarily driven by cautious
    spending in the U.S. and Europe and a tough comparison to prior year in
    Japan, which benefited from stimulus spending in Q1 2012.
  oGenetic Analysis revenue was $365 million in the first quarter, an
    increase of 3 percent over the same period last year. Excluding the impact
    from currency, revenue increased 5 percent. Growth for the quarter was
    primarily driven by an increase in our Ion Torrent business and royalties
    including licensing agreements, partially offset by lower CE instrument
    sales and an expected decline in SOLiD product sales. 
  oApplied Sciences revenue was $189 million in the first quarter, an
    increase of 17 percent over the same period last year. Excluding the
    impact from currency, revenue increased 19 percent. Growth for the quarter
    was primarily driven by sales in Bioproduction and Forensics products.
  oRegional revenue growth rates excluding currency for the first quarter
    compared to the same quarter of the prior year were as follows: the
    Americas grew 5 percent, Europe grew 3 percent, Asia Pacific grew 10
    percent and Japan grew 1 percent. The Americas benefited from increased
    sales in Ion Torrent, Forensics, Bioproduction and higher royalties
    including licensing agreements. Europe saw growth in Forensics and
    Bioproduction, offset by lower Research Consumables. Asia Pacific grew
    across all business groups primarily due to Ion Torrent, Research
    Consumables, and Bioproduction. Japan growth was primarily due to Ion
    Torrent and Bioproduction sales, offset by lower sales from government
    stimulus programs that took place in the same period last year.

Outlook

The Company anticipates revenue in the range of $950 million to $955 million
and non-GAAP diluted earnings per share in the range of $0.94 to $0.97 for the
quarter ending June 30, 2013, due to the impact from the fluctuations in
currency rates, and the timing of operating expenses and larger deals compared
to the guidance provided on February 4, 2013. Based on March 31, 2013 rates,
currency is expected to have a negative impact of $62 million to revenue and a
negative $0.15 impact to non-GAAP EPS for the full year.

Conference Calls

Given the recent announcement that Life Technologies and Thermo Fisher have
entered into a definitive merger agreement under which Thermo Fisher will
acquire all of the outstanding shares of Life Technologies for $76.00 per
share in cash, the Company will no longer hold conference calls for its
quarterly and annual earnings. The transaction, which is expected to close
early in 2014, is subject to a Life shareholder vote and satisfying customary
closing conditions, including regulatory approvals.

About Life Technologies

Life Technologies Corporation(NASDAQ:LIFE) is a global biotechnology company
that is committed to providing the most innovative products and services to
leading customers in the fields of scientific research, genetic analysis and
applied sciences. With a presence in more than 180 countries, the company's
portfolio of 50,000 end-to-end solutions are secured by more than 5,000
patents and licenses that span the entire biological spectrum -- scientific
exploration, molecular diagnostics, 21stcentury forensics, regenerative
medicine and agricultural research. Life Technologies has approximately 10,000
employees and had sales of $3.8 billion in 2012. Visit us at our
website:http://www.lifetechnologies.com.

Safe Harbor Statement

Certain statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, and Life Technologies intends that such forward-looking statements be
subject to the safe harbor created thereby.Forward-looking statements may be
identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "will," or words of similar meaning and
include, but are not limited to, statements about the expected future business
and financial performance of the company and statements regarding the proposed
acquisition of Life Technologies by Thermo Fisher. Such forward-looking
statements include, but are not limited to, statements relating to financial
projections, including revenue and pro forma EPS projections; success of
acquired businesses, including cost and revenue synergies; development and
increased flow of new products; leveraging technology and personnel; advanced
opportunities and efficiencies; opportunities for growth; expectations of
prospective new standards, new delivery platforms, and new selling
specialization and effectiveness; plans and prospects for the company;
corporate strategy and performance; and the expected timetable for completing
the transaction with Thermo Fisher.A number of the matters discussed in this
press release and presentation that are not historical or current facts deal
with potential future circumstances and developments, including future
research and development plans. The discussion of such matters is qualified by
the inherent risks and uncertainties surrounding future expectations generally
and other factors that could cause actual results to differ materiallyfrom
future results expressed or implied by such forward-looking statements. Such
risks and uncertainties include, but are not limited to: volatility of the
financial markets; and the risks that are described from time to time in Life
Technologies' reports filed with the SEC.This press release and presentation
speaks only as of its date, and the company disclaims any duty to update the
information herein.

All products referenced are for Research Use Only and not intended for use in
diagnostic procedures, unless otherwise noted.

Non-GAAP Measurements

This discussion includes certain financial information which constitutes
"non-GAAP financial measures" as defined by the SEC. The GAAP measures which
are most directly comparable to these measures, as well as a reconciliation of
these measures with the most directly comparable GAAP measures, can be found
at on the Investor Relations portion of the company's website at
www.lifetechnologies.com.

Additional Information and Where to Find It

This communication may be deemed to be solicitation material in respect of the
proposed acquisition of Life Technologies by Thermo Fisher. In connection with
the proposed acquisition, Life Technologies intends to file relevant materials
with the SEC, including Life Technologies' proxy statement in preliminary and
definitive form. Stockholders of Life Technologies are urged to read all
relevant documents filed with the SEC, including Life Technologies' definitive
proxy statement, because they will contain important information about the
proposed transaction. Investors and security holders are able to obtain the
documents (once available) free of charge at the SEC's web site,
http://www.sec.gov, or for free from Life Technologies by contacting investor
relations at (760) 603-7208 or ir@lifetech.com. Such documents are not
currently available.

Participants in Solicitation

Thermo Fisher and its directors and executive officers, and Life Technologies
and its directors and executive officers, may be deemed to be participants in
the solicitation of proxies from the holders of Life Technologies common stock
in respect of the proposed transaction. Information about the directors and
executive officers of Thermo Fisher is set forth in its proxy statement for
Thermo Fisher's 2013 Annual Meeting of stockholders, which was filed with the
SEC on April 9, 2013. Information about the directors and executive officers
of Life Technologies is set forth in the proxy statement for Life
Technologies' 2013 Annual Meeting of stockholders, which was filed with the
SEC on March 15, 2013. Investors may obtain additional information regarding
the interest of such participants by reading the proxy statement regarding the
acquisition (once available).

(Logo: http://photos.prnewswire.com/prnh/20110216/MM49339LOGO)

Investor and Financial Contact

Carol Cox
Investor Relations
(760) 603-7208
ir@lifetech.com

LIFE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
                                             For the three    For the three

                                             months ended     months ended
(in thousands, except per share data)
                                             March 31, 2013   March31, 2012
(unaudited)
Revenues                                     $            $    939,114
                                             962,512
Cost of revenues                             326,014          313,681
Purchased intangibles amortization           72,380           72,106
                Gross profit                 564,118          553,327
Gross margin                                 58.6%            58.9%
Operating expenses:
  Selling, general and administrative        271,216          253,398
  Research and development                   83,546           88,598
  Business consolidation costs               26,689           14,266
          Total operating expenses           381,451          356,262
                Operating income             182,667          197,065
Operating margin                             19.0%            21.0%
  Interest income                            471              764
  Interest expense                           (29,365)         (35,738)
  Other expense, net                         (2,476)          (5,716)
          Total other expense, net           (31,370)         (40,690)
Income from operations before provision for
 income taxes                            151,297          156,375
Income tax provision                         (30,188)         (23,736)
                Net income                   121,109          132,639
                Net loss attributable to     87               -
                non-controlling interests
                Net income attributable to   $    121,196  $    132,639
                controlling interest
Effective tax rate                          20.0%            15.2%
Add back interest expense for subordinated
 debt, net of tax                         -                12
Numerator for diluted earnings
 per share                                  $   121,196   $    132,651
Earnings per common share:
  Basic earnings per share attributable to   $           $      
  controlling interest                       0.71            0.74
  Diluted earnings per share attributable to $           $      
  controlling interest                       0.69            0.72
Weighted average shares used in per share
calculation:
  Basic                                      170,807          178,873
  Diluted                                    174,481          183,113





LIFE TECHNOLOGIES CORPORATION

ITEMIZED RECONCILIATION BETWEEN

GAAP AND NON-GAAP NET INCOME
                                        For the three      For the three
                                        months ended       months ended
(in thousands, except per share data)   March 31,
                                        2013               March31, 2012
(unaudited)
GAAP net income                        $               $   
                                        121,109           132,639
 Non-GAAP revenue Adjustments
            Purchase accounting related 341                364
            adjustments
            Charges on a discontinued   -                  (457)
            product
 Total Non-GAAP revenue Adjustments     341           ^(1) (93)           ^(1)
 Non-GAAP cost of revenues and
 purchased intangible Adjustments
            Purchased intangibles       72,380             72,106
            amortization
            Purchase accounting related 733                -
            adjustments
            Licensing settlement        -                  (169)
 Total Non-GAAP cost of revenues and    73,113        ^(2) 71,937         ^(2)
 purchased intangible Adjustments
 Non-GAAP Operating Expense Adjustments
            Purchase accounting related 505                927
            adjustments
            Business consolidation      26,689             14,266
            costs
            Licensing settlement        -                  (934)
 Total Non-GAAP Operating Expense       27,194        ^(3) 14,259         ^(3)
 Adjustments
 Non-GAAP Other Expense Adjustments
            Noncash interest expense    -                  5,382
            charges
            Other expense               -                  5,297
 Total Non-GAAP Other Expense           -                  10,679         ^(4)
 Adjustments
 Non-GAAP Income Tax Provision
 Adjustments
            Income tax adjustments      (35,696)           (48,076)
 Total Non-GAAP Income Tax Provision    (35,696)      ^(5) (48,076)       ^(5)
 Adjustments
Non-GAAP Net Income                     $              $    
                                        186,061            181,345
 Non-GAAP loss attributable to          87            ^(6) -
 non-controlling interest
Non-GAAP Net Income Attributable to     $              $    
Controlling Interest                    186,148            181,345
Add back of interest expense for        -                  12
subordinated debt, net of tax
Non-GAAP Numerator for diluted earnings $               $    
per share                               186,148           181,357
Non-GAAP Earnings per common share:
 Basic earnings per share attributable  $            $      
 to controlling interest                1.09              1.01
 Diluted earnings per share             $            $      
 attributable to controlling interest   1.07              0.99
Weighted average shares used in per
share calculation:
 Basic                                  170,807            178,873
 Diluted                                174,481            183,113



Summary of Reconciliation between GAAP and
Non-GAAP Net Income
          For the three months ended March 31, 2013, Non-GAAP earnings
          resulted in total revenue of $962.9 million, gross profit of $637.6
          million with gross margin of 66.2%, operating profit of $283.3
          million with operating margin of 29.4%, and an income tax provision
          of $65.9 million with the Non-GAAP effective tax rate of 26.2% with
          the above adjustments.
          For the three months ended March 31, 2012, Non-GAAP earnings
          resulted in total revenue of $939.0 million, gross profit of $625.2
          million with gross margin of 66.6%, operating profit of $283.2
          million with operating margin of 30.2%, and an income tax provision
          of $71.8 million with the Non-GAAP effective tax rate of 28.4% with
          the above adjustments.
Notes
          Add back purchased deferred revenue of $0.3 million and $0.4 million
^(1)      for the three months ended March 31, 2013 and 2012, respectively.
          Adjust for revenue related to a discontinued product of $0.5 million
          for the three months ended March 31, 2012.
          Add back amortization of purchased intangibles of $72.4 million and
          amortization of a fair value inventory write-up of $0.8 million,
          offset by contingent consideration remeasurement of $0.1 million for
^(2)      the three months ended March 31, 2013. Add back amortization of
          purchased intangibles of $72.1 million and adjust for royalty fees
          and compensation costs of $0.2 million as a result of a licensing
          settlement for the three months ended March 31, 2012.
          Add back depreciation of purchase accounting property, plant, and
          equipment revaluation of $0.5 million for the three months ended
          March 31, 2013. Add back depreciation of purchase accounting
          property, plant, and equipment revaluation of $0.9 million, offset
          by compensation costs of $0.9 million as a result of licensing
^(3)      settlement for the three months ended March 31, 2012. Add back
          business consolidation costs including restructuring and integrating
          acquired entities, aligning acquired and existing operations through
          business transformation activities and costs associated with
          divesting entities of $26.7 million and $14.3 million for the three
          months ended March 31, 2013 and 2012, respectively.
          Add back charges associated with a divestiture activity of $5.3
          million, charges related to non-cash interest expense for senior
^(4)      convertible debts of $1.7 million and the extinguishment of a line
          of credit facility of $3.7 million for the three months ended March
          31, 2012.
          Non-GAAP tax adjustment due to the exclusion of the aforementioned
          business combination related charges, non cash charges, and one-time
^(5)      costs which are not indicative of the profitability or cash flows of
          the Company's ongoing or future operations. These deductions produce
          a GAAP only tax benefit which is added back for Non-GAAP
          presentation.
^(6)      Non-GAAP net loss attributable to non-controlling interest, net of
          tax benefit.
          The Company reports Non-GAAP results which excludes costs that are
          not indicative of the profitability or cash flows of the Company's
          ongoing or future operations. Such costs are restructuring cost,
          business transformation expenses, amortization and depreciation of
          deferred revenue, intangibles assets, and fixed assets, and
          revaluation charges for inventories, contingent consideration
          liabilities, asset impairments, and in process research and
          development expenses, incurred as a result of business combinations
          as well as the impact from the divestiture and discontinuance of
          product lines. The Company also excludes noncash interest expense
          associated with convertible debt bifurcation and noncash charges
          associated with non-controlling interests. In addition, the Company
          excludes one-time costs including the early repayment of debt and
          the associated impacts, and the impact of certain settlements in
          order to provide a supplemental comparison of the results of
          operations.

LIFE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     For the three months
                                                     ended March 31,
(in thousands)(unaudited)                            2013          2012
Net income                                           $ 121,109     $ 132,639
              Add back amortization and
               share-based compensation           92,820        92,962
              Add back depreciation                  30,813        31,459
              Balance sheet changes                  (93,055)      (62,939)
              Other noncash adjustments              (16,968)      (90,205)
Net cash provided by operating activities            134,719       103,916
              Capital expenditures                   (23,606)      (25,334)
              Proceeds from sale of assets          36,729        328
Free cash flow                                       147,842       78,910
Net cash used in investing activities                (43,511)      (39,417)
Net cash used in financing activities                (95,346)      (663,372)
Effect of exchange rate changes on cash              (2,741)       4,129
Net (decrease) increase in cash and cash equivalents $   6,244  $ (619,750)





LIFE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
                                           March 31,          December 31,
(in thousands)                             2013               2012
ASSETS                                     (unaudited)
Current assets:
 Cash and short-term investments           $    292,612    $    276,369
 Trade accounts receivable, net of         691,679            697,228
 allowance for doubtful accounts
 Inventories                               407,455            403,488
 Prepaid expenses and other current assets 277,716            248,154
  Total current assets                 1,669,462          1,625,239
Long-term assets                           6,869,586          7,012,826
  Total assets                         $  8,539,048     $   8,638,065
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Current portion of long-term debt         $      4,048  $    253,214
 Short-term borrowings                     324,004            100,000
 Accounts payable, accrued expenses and    743,064            839,137
 other current liabilities
  Total current liabilities            1,071,116          1,192,351
Long-term debt                             2,068,979          2,060,855
Other long-term liabilities                712,632            731,396
Stockholders' equity                       4,686,321          4,653,463
  Total liabilities and stockholders'   $  8,539,048     $   8,638,065
 equity

SOURCE Life Technologies Corporation

Website: http://www.lifetechnologies.com
 
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